Good Morning Traders!
Most of Friday was spent consolidating a large gap up basis the pit session. Basis the 24 hour charts, the SPs have had two big low to high days. More consoldiation shuold unfold. Taylor would say Sell Short day but scalp only since the 2-period ROC made new mo mo highs. Main psychological points: 2002.25 = start of gap. 2000 big round number. 1994.25 closes the gap. To the upside: 2014.50 = previous all time high. Above this – the last weekly swing high for the Russell, then all time highs for the Russell.
Markets that made big moves such as precious metals and Yen = uncertainty leads to early testing in both directions as the market is at a new level not seen for a long time.
Corn and Wheat – Daily upswing is overbought.
Copper – Buy Day, can also see nice A B C correction on the intraday charts. First objective = Close back above the daily 5 SMA.
Nat Gas: Weekly Buy divergences. Friday had trade backup into middle of prior range. Sunday night = gap up to middle of prior range. If no resistance between 40.20 – 40.60, then can eventually work way back up to 42 – 42.40 – upper end of prior range. For Friday look for spot to try short sale against Globex highs to test down to start of gap area.
Monday/Tuesday consolidation will set up 120 minute Grail buys and sells on many markets. Dollar index continues to be a good proxy to watch!
Make the start of November a day with no sloppy habits or unforced errors to set the tone for the rest of the month!